Gaming industry boosted by PS4’s announcement – Pachter

Well that’s encouraging.

Wedbush Morgan analyst, Michael Pachter, believes that the share price of gaming companies have increased following the PS4 reveal by Sony. He attributes this to the return of investors back to the industry, after three years of slow sales.

“There appears to be some light at the end of the long tunnel, with share prices for the game publishers beginning to rally after underperforming the market for most of the last three years,” his note to investors read, (via GamesIndustry)

“Once Sony announced the PS4 in February, investor confidence returned somewhat, and share prices for Activision, EA and Take-Two have all risen for most of the year.”

He said that 2013’s E3 event will be the most interesting yet and investors will be making plans to see the new hard first hand.

“While we think this is more of a function of the current state of display technology, we tend to agree that next-generation games will not be significantly more visually stunning than current-generation games,” he said.

“However, we think that improvements in facial and voice recognition technology, and dramatic increases in memory may allow for ‘smarter’ game characters, who may react to and adapt to the style of game play. We expect consumers to be dazzled by the next-generation consoles, and think that rich multimedia functionality may be sufficient to induce most to consider upgrading.”